Mammoth Minerals Ltd (ASX:M79), an Australian-based resource development and exploration company, has announced a significant strategic move, securing a conditional agreement to acquire an 80% interest in the advanced Kilba Tungsten Project in Western Australia. Concurrently, the company has entered into a Binding Framework Agreement with American Tungsten & Antimony (ASX:AT4), which is developing a vertically integrated international Tungsten and Antimony supply chain. This dual announcement positions Mammoth Minerals to advance a key tungsten asset while forging a strategic partnership for vertical integration.
The Kilba Tungsten Project, located in the Nanutarra region of the Western Pilbara, boasts a JORC 2012 Mineral Resource of 7.2 million tonnes at 0.19% WO3, comprising 79% Indicated Resources. The project is characterised by tungsten mineralisation outcropping at the surface and significant historical drill intercepts, including 13.0 metres at 1.01% WO3 from 59.0 metres. Furthermore, over 4.5 kilometres of untested drill-ready targets have been defined, indicating considerable growth potential for the existing mineral resource.
To support this acquisition and development strategy, Mammoth Minerals has successfully received firm commitments to raise $3.87 million via a two-tranche placement at $0.026 per share. American Tungsten & Antimony (ASX:AT4) notably committed $1.58 million to this placement, becoming a substantial shareholder in Mammoth. The Binding Framework Agreement grants AT4 an exclusive right to 20% offtake from Kilba’s existing Mineral Resource and outlines a collaboration to establish a vertically integrated supply chain from the mine to an Ammonium Paratungstate (APT) producer, leveraging AT4’s Del Sol Refinery in Nevada. This strategic alignment aims to address increasing demand for tungsten, a critical mineral for defence and high-technology applications.
